Broker Guy Carpenter has announced the launch of a global Sidecar Center of Excellence (COE), which will be led by Ed Hochberg, Global Risk Solutions Leader.
As mentioned, Hochberg will oversee the COE, while continuing to fulfill his existing duties at the company
We recently reported that third-party capital deployed in reinsurance through insurance-linked securities (ILS) and other alternative structures is now forecast to have grown over 12% during the course of 2025 to a record $120 billion.
This clearly showcases how alternative reinsurance capital continues to play an increasing role across the reinsurance market.
“Sidecars, which are special purpose vehicles formed by reinsurers, frequently provide crucial investor-funded capacity for property, casualty, as well as diversified exposures,” Guy Carpenter explained.
Additionally, with reinsurance sidecars emerging as key capital instruments for re/insurers seeking to utilise third-party capital, Guy Carpenter recently emphasised that the current growth and momentum within the space has been concentrated in ceded reinsurance strategies, casualty-focused portfolios; and MGAs, MGUs and capital-light entities.
In addition, the outstanding market for collateralized reinsurance sidecar structures has continued to grow at pace largely thanks to heavy investor interest in the structures, with the latest estimate from Aon Securities putting invested capital in sidecar vehicles at a new high of $19.6 billion.
Commenting on the new COE, Laurent Rousseau, CEO of Guy Carpenter’s Global Capital Solutions business, said: “Sidecars have the potential to offer great value to our clients, provided they are well-structured and managed.
He continued: “By bringing dedicated sidecar resources together under one umbrella, we will be able to structure transactions with all stakeholders in mind – reinsurers, sponsors, and capital providers – that will enable our clients to unlock innovative capacity and optimize their risk-return outcomes in today’s more volatile risk environment.”
Just this week, we’ve seen heavy activity across the sidecar market.
Earlier this week, MS Amlin confirmed the expansion of its Phoenix Re securitized sidecar vehicle, lifting it to $115 million for the 2026 underwriting year.
Then just yesterday, Ark Insurance Holdings Limited, a property and casualty insurance and reinsurance subsidiary of the White Mountains Insurance Group, Ltd., announced that it had renewed its collateralized reinsurance sidecar Outrigger Re Ltd. for the 2026 calendar year at a meaningfully smaller $70 million in size.
We also reported yesterday that QBE Re, the international reinsurance arm of the global insurance group, had successfully sponsored its first casualty reinsurance sidecar vehicle, securing over $550 million in fully collateralised quota share reinsurance through George Street Re.
As a reminder, you can find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
